Millennium Park grill sues to avoid paying property taxes

August 06, 2005|By Noreen S. Ahmed-Ullah, Tribune staff reporter.

Owners of Millennium Park's Park Grill restaurant filed a lawsuit Friday against the Cook County assessor's office, saying they should not be required to pay property taxes because they operate a concession.

Under a 20-year deal with the Park District, Park Grill does not pay for garbage pickup, water or gas, the contract shows. It also pays no property taxes. A requirement to employ minority- and female-owned subcontractors was contractually valid only during the restaurant construction.

The lawsuit, which was also filed against Cook County and the Cook County treasurer's office, stated that it was only after news reports in February that Park Grill had been given special treatment in its permit, including not being required to pay real estate taxes, that the assessor sent a notice of proposed increase in assessed valuation.

Park Grill has been operating the restaurant at Millennium Park for two years and did not receive assessment notices for those years, the lawsuit alleged.

In February, the Daley administration also stated that Park Grill's deal was too sweet and needed to be renegotiated.

Lisa Schrader, spokeswoman with the city's Office of Budget and Management, said Friday the agreement is still under negotiation.

At issue in the lawsuit is whether the restaurant has a license agreement with the Park District or a lease agreement.

The assessor's office said Friday it is a lease agreement and so is taxable. Stephen Novack, a partner in Chicago-based Novack and Macey LLP, which is representing the restaurant, said because the Park District retained substantial control over the property, such as the hours of operation, the requirements on employees' uniforms and the price of goods, the agreement is a license agreement. And so the restaurant is not taxable, Novack said.